Paying the premiums on one’s automobile insurance policies can feel like a financial hassle, especially when a person never seems to make any claims. However, in the event that a Hawaii resident suffers an injury in a car accident and must seek compensation from their insurer they should be aware of their rights. In some situations insurers engage in damaging practices that leave injured parties without the financial help that they need.
These damaging practices are often referred to as bad faith and bad faith can take on many forms in the insurance world. One form of insurance bad faith occurs when an insurer fails to perform an investigation into a claim or otherwise ignores a claim made by its policy holder. Failing to make an investigation into a claim can leave a victim waiting for support from the insurer they have trusted with their policy.
Another form of bad faith that insurers may engage in is failing to give an explanation for the denial of an insurance claim. When an injured party is not provided with an explanation for why their claim was rejected they cannot adequately prepare a rebuttal for reconsideration.
Insurers are bound to act with good faith and to pay out claims that are legitimate. Their failure to perform investigations in a timely manner, communicate with their policy holders and issue decisions on claims can cause victims to suffer additional damages and to suffer at the hands of bad faith insurers. Victims of bad faith insurance practices should consult with personal injury attorneys about their experiences to learn if they have any legal claims against the insurers that hold their policies.